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NTIC: NTIC's Q1 2026 Earnings: A Mixed Bag

NTIC reported a quarterly record consolidated net sales of $23.3 million, a 9.2% increase year-over-year, driven by strong growth in its ZERUST Oil & Gas and ZERUST Industrial segments, as well as Natur-Tec product sales. However, the company's gross profit margin declined to 36% from 38.3% in Q1 2025. NTIC's net income was $238,000 or $0.03 per diluted share, compared to $561,000 or $0.06 per diluted share in Q1 2025. Non-GAAP adjusted net income was $344,000 or $0.04 per diluted share. The actual EPS was $0.05329, slightly higher than the estimated $0.05.

NTIC

USD 8.745

0.63%

A-Score: 5.3/10

Publication date: January 8, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Consolidated Net Sales Growth Rose 9.2% to $23.3 million in Q1 2026, with ZERUST Oil & Gas contributing 58.1% growth.
  • ZERUST Oil & Gas Segment Set a record $2.4 million in Q1 2026, driving significant sales expansion.
  • NTIC China Sales Surge Increased 23.5% YoY to $4.9 million, reflecting regional market strength.
  • Gross Margin Decline Dropped to 36% from 38.3% in Q1 2025, impacting profitability.
  • Net Income Reduction Fell to $238,000 ($0.03/share) in Q1 2026, compared to $561,000 ($0.06/share) in Q1 2025.

Segment Performance

The ZERUST Oil & Gas segment achieved a record first-quarter sales of $2.4 million, a 58.1% increase year-over-year. ZERUST Industrial net sales rose 6.9%, and Natur-Tec product net sales increased 2.2%. NTIC China's sales grew 23.5% year-over-year to $4.9 million, contributing to the overall revenue growth.

Outlook and Guidance

NTIC expects higher year-over-year sales, improving gross margins, and controlled operating expense growth in fiscal 2026, which is expected to benefit profitability. The company will focus on driving sales growth, improving gross margins, and keeping operating expenses flat to improve profitability. Analysts estimate next year's revenue growth at 7.0%.

Valuation and Financial Health

NTIC had $6.4 million in cash and cash equivalents and $12 million in outstanding debt as of November 30, 2025. The company's current P/S Ratio is 0.96, and EV/EBITDA is 14.39. The Net Debt/EBITDA ratio is 0.97, indicating a manageable debt level. The company's ROE and ROIC are negative, indicating room for improvement in profitability.

NTIC's A-Score